The Affordable Housing Problem
One of the problems that have accompanied the increase in population is the affordability of housing. According to a study by StreetEasy in New York the increase in rent has been double the increase in wages from 2010 to 2017. This is demonstrated by the startling statistic that only 35 affordable units were available per 100 extremely poor households. According to a recent study at the University of Minnesota 71% of households spend more than half of their income on rent and utilities.
There are many factors leading to these problems. In New York some of the factors are:
· Income discrimination: Landlords discriminate against people paying with housing vouchers.
· A loophole in the state legislature was causing the number of rent-regulated apartments to reduce.
· Lack of funds has made it difficult to maintain subsidized housing.
Some of the things that can be done to reduce the stress on landlords charging high rent are:
· Property tax changes as it currently charges more to rental buildings and discourages constructions.
· Land value tax to be implemented rather than building value tax. Landlords are charged based on the number of floors in the building.
· Legalizing basement apartments that could open more than 5000 units.
